Description
Objective
To build a complete working Java program that applies control structures and file processing.
Overview & Instructions
As a banker, you are responsible for reviewing
Input consists of a file of raw loan data (named loandata.txt) in the following format:
{name} {principal) {term} {annualRate} {creditRating} {fee-optional}
Example data could be:
SMITH 20000 5 4.5 750
JOHNSON 18000 4 4.2 560 2.0
The principal amount is the loan request in dollars. The term is the duration of the loan in years. Note that
some loan applicants with a low credit score (under 580) will be required to pay an up-front fee. In the
example above, it implies that the customer would need to pay 2.0% of the $18,000 requested principal for
the added risk to the bank for taking on the risky loan. For any loan applications without this field, simply list
the fee as $0.00.
The formula for calculating monthly payment for a loan is:
r(PV) P
1 – (1+r)-
P = Payment
PV = Present Value
r = rate per period
n = number of periods
Note that the “periods” of the formula above are months. Therefore, be sure to convert n to months and
furthermore define the rate r as a monthly rate (i.e. annualRate / 12.0).
The loan payoff amount will be calculated as the monthly payment multiplied by the number of overall
months of the loan. This is the amount the bank receives in total back from the borrower.
A typical credit score ranges from 300 to 850. A bank will rate a loan applicant based on this number. From
the raw credit score in the data file, enter the credit rating description (i.e. Fair, Good, etc.) in your output
report.
Credit Score Range Credit Rating
300-579 Very Poor
580-669 Fair
670-739 Good
740-799 Very Good
800-850 Exceptional
Your output should appear as an organized, formal financial report summarizing each order in detail. You
are free to write your output directly to the Java file console or you may choose to write the report to an
external file. This will assist in maintaining the text formatting. An example format could be:
Customer Principal Rate Years Payment Payoff Fee Credit Rating
xxxxxxxxx $xxxxx.xx x.x% xx $xxxx.xx $xxxxx.xx $xxx.xx xxXXxXXXx
xxXXXXXXX $xxxxx.xx x.x% xx $xxxx.xx $xxxxx.xx $xxx.xx xxxxXXXxx
… and so on…
TOTALS $xxxxx.xx $xxxx.xx $xxxxx.xx $xxx.xx
After completing all output lines for each of the orders in the input file, write totals at the bottom of your
report for the principal, monthly payments, loan payoff and fee columns. This implies accumulating the
totals as you process them within the processing loop.
Deliverables
Deliver the following to the online course management system dropbox as your final product:
Notice
Upload your source code (.java) file
This is an individual assignment. You must complete this assignment on your own. You may not discuss your work in detail with
anyone except the instructor. You may not acquire, from any source (e.g., another student or an internet site), a partial or complete
solution to a problem or project that has been assigned. You may not show another student your solution to an assignment. You
may not have another person (current student, former student, tutor, friend, anyone) “walk you through” how to solve the
assignment.